Eurogroup: Greece Likely to Avoid Bankruptcy

Greece does not face any bankruptcy risks, though the situation in the economy is worrying, Eurozone Finance Ministers said on Tuesday. They also noted that the Dubai debt crisis is unlikely to have a major impact on Eurozone banking system, RTT News reported. In a meeting held on Tuesday in Brussels, Eurozone finance ministers asked the Greek government to cut fiscal spending from its 2010 national budget to reduce the budget deficit. For 2009, Greece set a budget deficit target of 12.7% of GDP after October 4 elections. That was much higher than the 3.7% of GDP estimated earlier. The shortfall was then planned to be cut to 9.1% in 2010. The European Union in November criticized Greece for not taking effective actions to reduce budget deficit. The European Commission expects Greece's public debt to rise 124.9% of GDP in 2010, the highest among Eurozone nations. Read more.